The Study On Management Of Dull Inventory For Company M

Market environment is changing fast everyday today.To control inventory reasonably has become an important management goal for enterprises. The speed of inventory turnover affects the enterprise capital’s liguidity directly. Moreover, the dull inventory can cause enterprises to face a series of problems and risks, such as, occupation of found, extra warehousing management cost, inspection cost, depreciation, expired metamorphism, damage and theft risk and etc. Hence, the high portion of dull inventory existed in enterprise can impact capital management efficiency, profit goal and competition seriously. In recent years, the inventory management already has been paid much attention by the enterprise, how to manage inventory effectively and improve inventory turnover rate, reduce dead inventory has become a necessary weight to remain the competitive power of enterprises.It’s quite common to have existence of slow-moving inventory in manufacturing enterprises, especially like traditional electronic industry, apparel industry and auto parts. Due to the occurring reason of dull inventory is too complicated, which has been becoming the hardest part in inventory control to many enterprises. In fact, there is direct relation between dull inventory and enterprise management, e.g.: developing history of company, inventory control system, sales forecast, purchasing strategy, production processing and design change and so on.Not only need the theory knowledge but also need actual object in researching solving method for dull inventory. To research dull inventory needs theoretical knowledge,and actual research object is more important.This Paper is based on the research of the dull inventory from inventory control in company M,through various channels to collect a large amount of data, in order to improve the state of inventory management and solve the dull inventory of company M.Based on the thorough analysis of business&development background,inventory management,internal management and so on in Company M,the reason of increasing dull inventory is found.Then through combining the basic theory of supply chain and inventory management, it is coming up with the prevention methods and treatment countermeasure of dull inventory for company M.The research method which used in this paper is the combination of both theory and practice,and with charts,figures and flow diagram to get qualitative and quantitative analysis. The preventing methods and treatment countermeasure in solving the M company’s dull inventory can also be the reference for electronic products manufacturing industry.